How the QSCB funding will work for Hancock School
There are a lot of questions being asked about the QSCB Stimulus funding and in some cases very few answers. For the majority of the project the Hancock School board and administration knows what needs to be done and how the funding process will work. What is still uncertain is who will be doing the work and how much it will cost.
The funding process...
Board members have been getting a lot of questions about how the QSCB Bonds work for funding the school project. They clarified this procedure at their meeting on Monday night.
Step one - The State will be issuing just over $305,000 in municipal bonds to cover the project. These bonds will then be purchased by businesses or individuals for a low interest rate. The bonds generally sell easily as investors know that these types of bonds are very stable and less risky than other high interest types of sales. The person or business buying the bonds also receives a tax break.
Step two - The funds from the bonds are then generated to the school in the form of a low interest loan. The interest rate is determined by the rate set during the sale of the bonds.
Step three - After receiving quotes and bids for the various aspects of the project the board will award the bids and have a more accurate account of how much will need to be borrowed. In this portion of the project the board is hoping that if the bids come in low, perhaps a few other things could be added such as roof repair. However Superintendent Jerry Martinson stated that he is not sure about the limits in regard to using the money.
Step four - At the completion of the project the state will determine the final loan amount. The repayment will be spread out over a number of years with the payment being deducted from state aid funds. Fourteen years is the common repayment span. The payment will come out of state aid money designated for building maintenance and if needed from the Community Ed aid.
Step five - The Hancock School Board and Administration is hopeful that after the new boiler system, windows and lights are installed there will be a substantial savings in energy costs. They estimate that this savings will be enough to cover the payments made by the school over the next several years.
Supt. Martinson has started to ask for bids for the boiler replacement and asked the board if they had a preference as to the type of heating system. The board felt it would be a good idea to explore all the options including natural gas, electric and any others. Martinson is working with Climatemakers to come up with the specs needed by the bidders.
He will also be obtaining quotes for the replacement of windows throughout the school building as needed and for the new classroom lights.
The bids will be opened at the October meeting of the board. The work is proposed to be started on June 1, 2010 and completed by September 1, 2010.